Revolut is set to invest A$400 million (US$280 million) in Australia after securing a full banking licence, marking a major expansion as the UK-based fintech seeks to challenge the country’s dominant banking sector.
The company, valued at US$75 billion, launched savings and credit products for Australian customers on Tuesday after the Australian Prudential Regulation Authority granted it an unrestricted banking licence. The approval represents Revolut’s first banking licence in the Asia-Pacific region and only its second outside the UK and Europe, following Mexico.
Revolut already serves 1.2 million retail and business customers in Australia through its app, offering services including foreign exchange and trading. Founder and chief executive Nik Storonsky said the company had identified full expansion in Australia as a long-term strategic priority.
Australia’s banking industry is dominated by Commonwealth Bank, National Australia Bank, Westpac and ANZ Group. The four lenders have maintained their market positions despite previous challenges from overseas banks, including Citibank and HSBC, as well as a wave of neobanks launched over the past decade, many of which failed to establish a lasting presence.
Matt Baxby, chief executive of Revolut Bank Australia, said the company was entering the market from a stronger position than previous digital banking challengers because it was already profitable and had built a substantial customer base before receiving its full banking licence.
Baxby said the rapid expansion of Macquarie in Australia’s savings market had demonstrated that digital banking platforms offering competitive interest rates could gain market share. He added that the new banking licence was also expected to strengthen customer confidence in using Revolut for everyday banking because of the higher regulatory and compliance standards attached to unrestricted banking operations.
“It comes with a high bar,” Baxby said of the licence, referring to its regulatory requirements.
Matthew Wilson, an analyst at the Jarden investment group, said Revolut was well positioned to compete in Australia’s credit and savings markets, drawing comparisons with Macquarie’s growth strategy. He said the fintech’s experience in markets such as Ireland gave it an advantage despite the entrenched position of Australia’s largest banks.
“They’re sharp operators,” Wilson said. “It’s not easy given the size of the incumbents. But Revolut has the beachhead in the UK. They’re not a new bank — they’re new to Australia.”
Revolut is also seeking to expand across the region beyond Australia. The company has applied for a full banking licence in New Zealand, where the same four Australian banks dominate the financial sector. Baxby described New Zealand as “prime ground” for the company’s next stage of growth.
The Australian expansion follows Revolut’s receipt of a full UK banking licence in March after a multiyear approval process. The Financial Times reported in April that the fintech is targeting a valuation of between US$150 billion and US$200 billion in a stock market listing expected no earlier than 2028.
